Ahead of Market: 10 things that will decide stock market action on Tuesday

The Indian market ended higher on Monday, buoyed by stronger-than-expected earnings from banking heavyweights HDFC Bank and ICICI Bank. However, gains were tempered by a decline in Reliance Industries, amid concerns over weakness in its oil-to-chemicals and retail businesses.

The Sensex added 442.61 points, or 0.54%, to close at 82,200.34, while the NSE Nifty advanced 122.30 points, or 0.49%, to end at 25,090.70. The total market capitalisation of BSE-listed companies increased by Rs 62,703 crore to Rs 460.08 lakh crore.

Here’s how analysts read the market pulse:

Positive results from banking majors supported the market to rebound after many days of consolidation, said Vinod Nair, Head of Research, Geojit Investments.

“The market remains highly reactive to earnings, indicating that investors remain focused on the earnings front to aid valuation. The manufacturing segment gained today as the government is reviewing the scope of expanding the infrastructure spending to support growth,” said Nair.

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US markets

The S&P 500 and the Nasdaq reached new record highs on Monday, bolstered by gains in megacaps as investors geared up for the week’s major tech earnings, while the prospects of fresh trade deals also boosted sentiment.
Verizon gained 4.1% after boosting its annual profit forecast. The stock also drove up the communications sector , which emerged as the top gainer among other sectors.
Most big-tech names moved higher, pushing the S&P’s information technology sector up 0.6% to hit an all-time high.
Investors were hoping for some progress in trade talks after U.S. Commerce Secretary Howard Lutnick on Sunday, who expressed confidence over striking a trade deal with the European Union.

However, EU diplomats said the 27-member bloc is exploring a broader set of possible counter-measures against the United States, as hopes for a breakthrough deal with Washington dwindled.

Trump has threatened to slap 30% tariffs on imports from Mexico and the EU, keeping markets on edge.

European Markets

European shares ended a choppy session in the red on Monday, as investors weighed a mixed bag of corporate earnings and keenly awaited the outcome of ongoing trade negotiations between the U.S. and the European Union.

The pan-European STOXX 600 index closed 0.1% lower, as a drop in healthcare stocks such as Roche and Novonordisk offset gains in mining companies.

Traders were gearing up for a week filled with corporate updates in both Europe and the U.S. and will scrutinize company reports for any clues on the impact trade uncertainty has had on profitability and consumer demand.

Tech View

The Nifty remained volatile during the day as traders awaited more clarity on the US-India deals, said Rupak De, Senior Technical Analyst at LKP Securities, adding that during the session, Nifty found support around the 50 EMA on the daily timeframe, leading to an intraday recovery and the RSI continued to show a bearish crossover on the daily chart, indicating weak momentum.

“Going forward, 24,900 remains a crucial support level for the index; a decisive fall below this level is likely to empower the bears. On the other hand, resistance is placed at 25,200–25,260,” said De.

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Most active stocks in terms of turnover

Reliance Industries Ltd (Rs 3,221 crore), HDFC Bank (Rs 2,224 crore), ICICI Bank (Rs 2,022 crore), Eternal (Rs 1,813 crore), Axis Bank (Rs 1,737 crore), Mastek Ltd (Rs 1,400 crore) and TCS (Rs 1,216 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.

Most active stocks in volume terms

Vodafone Idea (Traded shares: 22.83 crore), YES Bank (Traded shares: 12.67 crore), JP Power (Traded shares: 12.56 crore), Eternal (Traded shares: 6.75 crore), Ola Electric Mobility (Traded shares: 4.49 crore), Suzlon Energy (Traded shares: 3.58 crore) and Tata Steel (Traded shares: 2.98 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Mastek Ltd, Eternal, Jyoti CNC Automation, Persistent System, Apar Industries, UPL and ACME Solar Holdings were among the stocks that witnessed strong buying interest from market participants.

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52 Week high

Over 161 stocks hit their 52 week highs today while 52 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included UltraTech Cement.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were MRPL, Ceat, JP Power, Au Small Finance Bank, Newgen Software, Sterling and Wilson Renewable Energy and Sumitomo Chemical India.

Sentiment meter bearish

The market sentiments were bearish. Out of the 4,327 stocks that traded on the BSE on Monday, 2,264 stocks witnessed declines, 1,892 saw advances, while 171 stocks remained unchanged.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)